What Is The Accounting Treatment Of Legal Fees Incurred Relating To A Stock Issuance?
Need to know the accounting treatment for financial reporting purposes. Please also provide relevant guidance on this matter.
Need to know the accounting treatment for financial reporting purposes. Please also provide relevant guidance on this matter.
Share capital
Initial measurement of share capital reflects the net proceeds from issue, defined as the fair value of the consideration received, net of transaction costs directly attributable to the equity transaction [IAS32R.35]
Shares issued for cash are recognised at the amount of the net cash proceeds.